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Reston Real Estate: Just Listed

by RestonNow.com Sponsor February 7, 2019 at 5:30 pm 3 Comments

This is a sponsored post by Eve Thompson of Reston Real Estate.

Inventory is holding steady with new homes coming on the market at about the same rate that they’re going under contract.

There are currently 117 houses on the market in Reston which is about 2 months’ worth of inventory. Spring is just around the corner and should bring with it a lot of new housing inventory, but will also bring out more buyers.

In my last Just Listed Sold blog post a reader commented that they thought the prices indicated a “Bubble” in the housing market — the unspoken threat being that surely a “burst” would soon to follow.

The market is moving at a pretty brisk pace but prices are not escalating at a rapid rate. Home value appreciation in Reston last year was at right around 5% which is slightly ahead of the historical norm of 4% for housing as an asset.

This better than average gain is offset by the fact that the Reston market has been a little flat for the past several years and has only recently begun to perk up, in part fueled by new construction around the metro. I don’t think there’s any indication of a housing market “Bubble.”

Here are a few of the new houses to hit the market in the past week:

  • Remember 2008

    The DTI calculation is very simple and well known, if your debt is greater than 31% of your income then you basically live in a bubble. Furthermore the housing market goes in a 10-12 year cycle and given the last bust in 2008 we should see the market dipping again soon. However, since we are dealing with a government-backed mortgage industry there may be different dynamics at play. In short, don’t buy more than you can afford (hard not to, in this area). Or better, safe your cash for the crash and then pay in full if you’re a bull.
    Realtors will never tell you this because they are mostly detached from realty.

    • Mike M

      You beat me to the punch. I would say that many realtors don’t even understand interest rates beyond the very basics. Many are just like the house flippers, just a’ sellin’. I seem to remember that before the last crash the median house price in Fairfax was beyond the technical reach of the median income. Bad sign. This area’s only saving grace is the carefree spending by the federal government. If we had to deal with real business cycles we would have been walloped in 2008. Back to house flippers, they are back! I remember a mid-level IT technician told me about his house flipping and holdings. He was incredulous that I was not flipping houses.
      WHEN THE “SHOESHINE BOYS TALK STOCKS,” hold on to your cash and credit.

    • Eve Thompson

      No one should buy more than they can afford.

      We’re not seeing lenders make the outrageous loans of the early 2000’s that were based on the assumption of insane appreciation. Appraisals have been conservative and as I said values increased at an appropriate if not somewhat slow rate.It is true that the debt to income ratio to qualify for a home loan is about 41% depending on the loan program the buyer is using. I don’t see many buyers willing to go to their max purchase potential.

      Its a far cry from a market like San Francisco where the median home price hit $1.61 million.

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